Labor Unions Ruin Small Businesses
“The boss needs you, you don’t need him,” is a slogan commonly heard throughout labor unions since the early 20th century. Disguised as advocates for workers rights, the vast majority of unions have become money laundering schemes that are ruining businesses as well as our political system.
Now before you assume I’m some monopolistic tyrant who wants all men, women, and children to work in coal mines for 16 hours a day, I used to work in a unionized grocery store, along with my brother and some of my best friends. My mother is a public school teacher and my father is a unionized engineer. I can honestly say that they aren’t nearly worth the dues we are required to pay. I’m going to highlight the process of how Unions get their money, what they use it on, and how it effects our economy and your money.
In the vast majority of cases, union membership is a requirement to being employed in certain companies. That means that in order for a company, one must pay $120 (or whatever the monthly dues are) out of their pockets to their union in exchange for the “services” that they provide.
What does a union do? When they aren’t opposing a labor contract that cuts union pay or benefits by even the slightest margin, they are donating to Democratic political campaigns.
According to Andy Stern, the head of the Service Employees International Union, “We [SEIU] spent a fortune to elect Barack Obama — $60.7 million to be exact — and we’re proud of it.”
We saw this problem last month as Wisconsin Governor Scott Walker tried to cut the state budget. Immediately upon hearing that collective bargaining rights on benefits were to be removed, the 14 state senate Democrats fled across the state border to Illinois. Here’s where the story gets interesting.
”Public-employee unions and individual government workers contributed at least $344,000,” to the campaigns of those 14 members, or about 1 in 5 of their campaign dollars. We can see where this is going: Unions bend over backwards to get their politicians elected, and in return the Democrats raise the minimum wage, increase unions’ legal rights, and even come out to rally for support during union protests.
Not only is this bad politics, it’s bad for our labor market. Take the teachers unions for example. In most states, as soon as a public sector teacher is employed for three years, they receive tenure, and can’t be fired or laid off unless in the case of massive budget cuts or a sexual scandal. This seniority based system of hiring and firing is the most inefficient system imaginable, and your kids are left with the older teachers who haven’t retired only because they can slack their way to more money.Continued on the next page